Snapshots of Financial Coaching - For Your Information of Financial Coaching ... Planning for my financial future Saving money. ... • CNM Coaching model not exclusively about

Snapshots of Financial Coaching

Bank of America & Annie E. Casey Foundation Meeting

April 26, 2010

Context for CoachingFinancial Capacity Building

InformationModels

Advice Models

MechanismModels

• Disclosures• Print/Web• Interactive Web• Workshops• One:One• Reminders

• Technical expert (credentialed)

• Transactional guide (may have sales focus)

• Counseling (acute problem solving)

• Coaching

• Defaults• Automatic Deposit• Product constraints

Therapy –diagnosis / Treatment • Self Control: External Monitoring

• Executive Attention

Typical Features of Coaching

• As used across fields

• One-one relationship over time

• Focus on self-actualization – Practice skills and strategies with support

• Generally goal-focused

• Typical client has potential to improve performance– Non-clinical; strengths based; non-crisis

Coaching Models

Staffing:

• Pro bono expert

• Paid staff

• Financial professional volunteer

• Lay volunteer

Setting:

• Clients in Tax/IDA/otherprogram

• School/work-place based

• Head Start

• Other

Snapshot: Data Sources

• Web Survey of CNM Students

• Centers for Working Families Survey by Abt Associates

• Mail Survey of Financial Clinic MoneyUP Tax Clients

All very preliminary: Draft not for quotation

Central New Mexico Community College

Student Survey

April 2010

Survey of 178 Students

• Sent to two groups of CNM Students– Offered Achievement Coaching (n=81)

– “CLIENTS”

– Other CNM students not explicitly offered Coaching as a comparison group (n=97)

– “COMPARISON”

• Note: – all are CNM Students– Coaching not just $$ matters

In the past 12 months, how many times have you worked one-on-one with an achievement coach?

0%

10%

20%

30%

40%

50%

60%

70%

None One or two Three or four

Five or more

29%

42%

13% 15%

67%

28%

3% 1%

Clients

Comparison

Comparison Group as ‘Controls’?

Source: CNM Coaching Survey

Comparison Not Exact Control Group But CloseHave you ever received the following services?

0%10%20%30%40%50%60%70%80%90%

66%82% 81%

40%

18%

76%67%

12%

Clients

Comparison


Tendency Towards Women

0%

10%

20%

30%

40%

50%

60%

70%

80%

Male Female

23%

77%

30%

70%

Clients

Comparison


Tend to Be Older

7%

11%

16%

30%

23%

12%

27%

13%16%

27%

12%

5%

0%

5%

10%

15%

20%

25%

30%

35%

18-21 22-25 26-30 31-40 41-50 50+

Clients

Comparison


More Likely on Their Own

0%

5%

10%

15%

20%

25%

30%

35%

Married Separated Divorced Single/Never Married

22%

8%

22%

35%

31%

4%

15%

34%

Clients

Comparison


All Students Hold Few AssetsHow much do you estimate you and your spouse/partner have in

combined total savings? (excluding retirement)

0%5%

10%15%20%25%30%35%40%45% 42%

30%

13%8%

5%

40%39%

12%

5% 3%

Clients

Comparison


Two-Thirds Have Debt; One-in-Five Debt > $5000How much do you estimate you and your spouse/partner have in combined

credit card debt and consumer loans? (excluding mortgage)

0%

5%

10%

15%

20%

25%

30%

35%

40% 36%

19%

13%10%

20%

38%

17% 16%

11%

18%

Clients

Comparison


About Half Working at Some Level

51%

19%

22%

60%

23%

14%

0% 20% 40% 60% 80%

Not Working

Employed Full-time

Employed Part-time

Comparison

Clients

Most Rent

66%

19%

45%

32%

0% 20% 40% 60% 80%

Rent

Live with family or friendComparison

Clients


About Half Have Children in their HomesHow many children or grandchildren under age 18 do you

currently care for at home?

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

None 1 2 3 4 or more

47%

22% 22%

7%3%

49%

19%15%

11%

5%

Clients

Comparison


If you worked with an achievement coach in the past 12 months, what kinds of topics did you discuss with your coach (check all

that apply)?

Clients (125 responses)•Personal finance issues 55%•Academic issues 71%•Childcare issues 5%•Scholarships 51%•Employment and career issues 29%•Other issues 16%

Comparison (54 responses)•Personal finance issues 25%•Academic issues 84%•Childcare issues 0%•Scholarships 25%•Employment and career issues 19%•Other issues 16%

Coaching More Likely to Be $$ Focused


Satisfaction: Most Coached Clients Are Happy with Services

How satisfied are you with how well you and your coach work together to solve your problems?

Very satisfied56%

Satisfied31%

Neither satisfied nor dissatisfied

11%

Dissatisfied2%

Clients (n=55)


What is the main reason you have never worked with an achievement coach in the past year?

No problems to discuss

13%

I prefer to get help from my

family and friends4%

Too busy13%

Didn't know that I could work with a

coach39%

Other31%

Clients (n=23)


Coaching Clients Show Signs of Less Financial Interaction; More Supports

Do you have a…

0%

10%

20%

30%

40%

50%

60%

70%

80%

Checking account

Savings account

Retirement account

Matched Savings Account

73% 70%

15% 13%

76% 77%

17%

3%

Clients

Comparison


How do you rate yourself in the following areas during the last 3 months? (1=poor, 5=excellent)

1.5

1.7

1.9

2.1

2.3

2.5

2.7

2.9

3.1

3.3

3.5

Controlling my

spending

Planning for my

financial future

Saving money

Following a budget

Investing money

Providing financial advice to

others

3.2

3.0

2.8

3.1

2.1

2.6

3.2 3.2

2.6

2.8

1.8

2.2 Clients

Comparison


Most have Consumer Credit to ManageHow many credit cards do you have?

67%

19%

14%

Clients (n=78)

0

1

2 or more59%22%

19%

Comparison (n=95)


Negative Financial Management Events CommonIn the past 6 months have you…

Paid a late fee on a bill

Received a phone call

from a lender or creditor

Taken out a cash advance,

title, or payday loan

Bounced a check

Been evicted or had a

mortgage foreclosed

47%

40%

14%10%

4%

49%44%

14%

9%5%

Clients Comparison


Focus on CreditHave you checked your credit report in the past year?

25%

30%

35%

40%

45%

50%

% who checked their credit score

49%

32% Clients

Comparison


What is the level of your financial stress today? (1=no stress, 10=overwhelming stress)

If you had a question about a financial problem how confident are you that you could identify a solution? (1=not at all confident, 10=very confident)

If you had a financial problem how confident are you that you could find someone who you trust to help you? (1=not at all confident, 10=very confident)

6.876.78

6.7 6.75 6.8 6.85 6.9

Mean stress level Comparison

Clients

5.885.66

5.5 5.6 5.7 5.8 5.9

Mean confidence level Comparison

Clients

5.895.58

5.4 5.5 5.6 5.7 5.8 5.9 6

Mean confidence level Comparison

Clients


Have you ever received any of the following services?

0%

10%

20%

30%

40%

50%

60%

70%

29%

17%

32%

69%

43%

23%31%

10% 11% 14%

54%

37%

13%18%

Clients

Comparison


CNM Findings: Overall• Clients offered coaching had more needs

– Slightly less access/ use of financial services– And connected to more services

• Some signals they may be in more financial distress– But also ability to address issues

• CNM Coaching model not exclusively about finances but some indications that given hardships of targeted clients, positive effects relative to comparison group– Can try more analysis, but challenges remain…

CWF Data from 3 SitesCollected by Abt Associates1 2008

•n=168• Bon Secours of Maryland Foundation 55• Central New Mexico Community College 59• St. Louis MET Center 54

• 83 self-report that they met with a coach at least once in the past year• 85 self-report never met with a coach

More Likely to SaveThinking about the last year, which statement best

describes your typical savings behavior?

0%

10%

20%

30%

40%

I save money when I can but

this doesn't happen often

I save when there is

something specific that I want to buy

I try to save a set amount on a regular basis

I don't save any money, I spend all of

my income as it comes in

35%

14%

40%

11%

40%

7%

29%

24%

Coaching Clients

Comparison

Source: Abt Associates CWF Survey

Thinking about the past year, rate your Financial Behavior on a scale of 1 to 5 (1=Never, 5=Always)

22.22.42.62.8

33.23.43.63.8

4

I put money aside for future

purchases or emergencies

I comparison-shop or buy things on

sale

I pay at least the minimum balance due on my credit

cards or other bills

I pay my bills on time

I pay the total balance due on my credit cards, loans, or other monthly

bills

3.1

4.03.8

4.1

3.2

2.8

3.8

3.2

3.8

3.0

Coaching Clients Comparison


More Frequent Positive BehaviorsThinking about the past year, rate your Financial Behavior on a scale of 1 to 5

(1=Never, 5=Always)

1.5

2.0

2.5

3.0

3.5

4.0

I check my credit report regularly

I evaluate my current insurance coverage regularly

I look for ways to cut expenses

I spend more than I earn

I set aside money for savings

2.52.7

3.8

2.4

3.2

2.0

2.4

3.6

2.7 2.7



Greater Financial Security? Paying ExpensesThinking about the last year, which statement best describes your ability to pay your essential

living expenses, such as food, rent or mortgage, and utilities (e.g., heat, electricity, water, telephone)?

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

None, not able to pay any

essential living expenses (0%)

Able to pay some essential living expenses

(1-50%)

Able to pay most essential living expenses (51-

89%)

Able to pay almost all

essential living expenses (90-

100%)

2%

24%28%

45%

9%

26%

32%33%

Coaching Clients

Comparison


Greater Financial Security? Managing DebtThinking about the last year, which statement best describes your ability to pay any

outstanding debt(s) you owe (e.g., for medical bills, credit cards, other loans)?

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

None, not able to pay off any of my total

outstanding debt (0%)

Able to pay off some of my total debt (25%)

Able to pay off half of my total debt (50%)

22%

32%

10%

46%

20%

2%

Coaching ClientsComparison


Greater Financial Security? Negative Financial ManagementThinking about the last twelve months…

0%

10%

20%

30%

40%

50%

60%

70%

Have you bounced a check?

Were you ever late in paying your bills?

Did you ever borrow money from family or

friends?

Have you had a payday loan or an auto title

loan?

24%

60% 61%

9%

15%

65%63%

24%



0%

10%

20%

30%

40%

50%

60%

Do you presently have money equal to three

months of living expenses set aside for

emergencies?

Have any of your utilities been

disconnected?

Did you receive a work support or public

benefit that helped increase your income?

Have you been contacted by a

collection agency about an unpaid bill,

debt, or unsettled claim?

24%16%

49%44%

8%

21%

53%57%


Greater Financial Security?Financial Management and Access to Benefits


Take Up of CoachingIF NEVER MET WITH COACH: What is the main reason you have never worked with a

CWF financial (or achievement) coach in the past year? (Check one) (n=85)


NO financial problems to

discuss 13%

Prefer to get help from my family/

friends 5%

Didn’t know that I could work with

a coach 40 47%

Too busy with 9%

Other reason26%

Comparison with Abt Survey: Lack of Awareness Most Common Reason

39%

4%13%

31%

13%

CNM

Didn't know that I could work with a coachI prefer to get help from my family and friendsNo problems to discuss

Other

Too busy


47%

5%13%

26%

9%

AbtDidn’t know that I could work with a coachI Prefer to get help from my family and friends NO financial problems to discuss

Other

Too busy

Source: Abt CWF Survey

Strong Satisfaction RatingsIF HAVE MET WITH COACH: How satisfied are you with how well you and your

financial coach work together to solve your financial problems? (Check one) (n=81)

Very satisfied, 56.8%

Satisfied, 27.2%

Neither satisfied nor dissatisfied,

14.8%

Very dissatisfied, 1.2%


CWF Data Findings

• All Self Reported • likely positive selection

• But several indicators show stronger financial behavior for coaching clients• Basic financial management issues & behaviors

• Bill payment and other issues• Also positive perceptions of services

• Not all clients interested • No problems or prefer not to use outsider• But most are: main issue is awareness

MoneyUP Survey•n=428

• Mail Survey of 1,500 Tax clients from 2008-09• Linked to tax records

• Self Report if have goal or worked with Coach

• Mostly New York City: Bronx / Brooklyn zips

• Conducted Dec 2009 – Jan 2010

Evidence of Positive Selection

All Have Goal Coached

Use refund: Save for a financial goal 13% 16% 23%

More than $1,000 in savings 13% 15% 29%

Have any debt 44% 52% 64%

White 7% 8% 17%

College degree or more 49% 59% 76%

Income $12,018 $ 13,766 $ 17,178

n 429 267 60

Source: MoneyUP Client Survey

More likely to have Goals and Greater Confidence will Reach Goals

63%

38%

83%

48%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Have Financial goal Very confident will achieve

All

Coached


Linking Clients to Other Services

Do you know that the MoneyUP program could help you withfinancial issues outside of tax season?

76%

31%

24%

69%

0%

20%

40%

60%

80%

100%

Coaching Non-coaching

No

Yes


MoneyUP Data Findings

• Coaching clients among higher income, more savings etc

• Consistent with coaching as performance enhancement for stable clients not in crisis

• Key link to goal formation and self efficacy

• May result in greater connectedness to other services and referrals

More Data in 2010?

• Wisconsin Pilots: volunteer and Head Start

• EARN

• LISC

• Others…?

Measuring Impacts?

• Self report + administrative data (FICO, account balances, etc)

• Valid comparison group

• Ideal: Randomize offer

• But coaching has intrinsic bias of most motivated clients – hard to separate service from choice to participate

• Focus more on mechanism: self control and executive attention

Documents

Snapshots of Financial Coaching - For Your Information of Financial Coaching ... Planning for my financial future Saving money. ... • CNM Coaching model not exclusively about